Buying a car may fulfill several daily needs of international students in Canada. When you invest in a vehicle while staying in Canada, you will get enough convenience to travel from and to your school. However, international students often face difficulty and do not have enough idea of how to get car loans to buy a vehicle in an unknown country. For this, we have shared simple and easy steps to help international students in obtaining their auto loans in Ontario Canada.
A Valid Driver’s License
Whether you purchase a vehicle in Canada via full payment or want to get a car loan, a valid driver’s license is compulsory. If you do not have driving experience in the past, you need to go through a knowledge test, vision test, and road test at any Ontario-based government institute. If you have already undergone the respective process in your home country, you only need to share your international driver’s license and let the officers verify it for its authenticity.
A Social Insurance Number
Once you arrange your international driver’s license, you should take steps to get your Social Insurance Number abbreviated as SIN. SIN lets you receive payments in Canada. If you want to apply for an SIN, you must provide valid proof to highlight that you are a school student in Canada. In this situation, the government will issue you a social insurance number as an international student or a temporary worker in Canada. Regardless you are a student or a temporary resident, your SIN will start with the number 9.
Work Permit Or Study Permit
International students looking for car loans in Ontario must present a work permit and a student permit.
Study Permit
The Immigration and Citizenship authority in Canada issues study permits to the country’s international students. The permit confirms that a candidate is eligible to study in Canada. The key here is to make sure that your study permit expiry date should never exceed the total period required by you to pay off your car loan. Make sure to abide by the law and avoid running into any unpaid debt.
Work Permit
Get permission from your school to work off-campus, on campus, or as an intern to get your work permit. We recommend you get help from a reputed Canadian embassy and follow his guidelines to get the required documents to start working and making money. Once you start earning money, you may build your credit score gradually to prepare for your car loan as an international student.
Income Proof
If you are working part-time in Canada along with your studies, you should provide your employment and income proof from your respective company. Simultaneously, provide details related to your bank account to justify that you earn a regular salary at the time of your loan assessment. In contrast, if you are only studying in Canada, you must look for alternative ways to earn money for making payments to the car dealer without your credit card.
Pay Down Payment as Your Security Deposit
Lastly, you should pay a some amount of cash as the down payment for your new vehicle as your security deposit.
How to Apply for Car Loan?
Click here to apply for car loan in Canada
Conclusion
Buying a car gives several benefits to international students while going from/to institutes, hostels, offices, and other places in Canada. Stay aware of the mandatory steps to get the required loan for your desired car without any difficulty.